Cyclepro

Ltd, a bicycle retailer who operates in Pretoria, ordered 1 500 new Western

Flyer Frames from Singapore for their exhibition to be held at the Rand Show.

The Western Flyer Frames were received from their supplier on 1 February 2024.

The invoice price of the Western Flyer Frames was R2 500 each (before a trade

discount of 5%) and is payable on 31 March 2024, the year-end of Cyclepro Ltd.

A goods in transit insurance was taken

out for a non-refundable R1 500 deposit for delivery of the items to Cyclepro Ltd’s

warehouse. On route to Pretoria, an attempt was made to hijack the delivery

truck and 25 of the Western Flyer Frames were irreparably damaged on 1 February

2024. A Claim was submitted to the insurance company.

The following cash costs regarding the purchase were:

Additional information:

• Inventory is valued at the lower of cost

  and net realisable value on a first-in-first-out basis.

• Inventory shipping terms is free on

  board (products of Cyclepro Ltd when shipped)

Required:

What will the cost of inventory be after delivery per unit at

year-end 31 March 2024 (round up to the nearest rand)?